Most popular forex currency pairs?
What are all the best forex pairs to trade?
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Tagged with: currency • currency pairs • forex currency • Forex Questions
Filed under: Currencies
EUR/USD is most popular.
GBP/USD is liked by ppl who are comfortable with increased volatility
RainMaker
The most popular currency pairs are:
EUR/USD GBP/USD USD/JPY USD/CHF
EUR/JPY USD/CHF EUR/GBP USD/CAD
EUR = Euro
USD = US Dollar
JPY = Japanese Yen
GBP = Great British Pound
CHF = Swiss Franc
The EUR/USD is the most traded currency pair by far.
The most popular are the majors: EUR/USD GBP/USD USD/JPY and USD/CHF.
I prefer the GBP/USD and the GBP/JPY due to the volatility.
1) EUR/USD: The most liquid pair in the world with the tightest prices. Most bank market makers are excellent at providing this pair, which we believe makes it a no brainer to trade at a No Dealing Desk broker like FXCM. It’s good and deep 24 hours a day. It’s the best currency pair to do large orders, as well as the best currency to scalp during Asian hours given the low spreads. Most high frequency institutional systems that go for few pips to even one pip profit per trade generally use EUR/USD.
2) EUR/JPY: An excellent highly liquid pair with the same characteristics as USD/JPY but just a notch under. This one happens to have better defined trends and is more volatile due to the concentration of speculators and carry traders. EUR/JPY is a great currency pair for breakout, momentum, and other typical technical strategies.
3) USD/JPY: Another great liquid currency pair that’s almost as good as the EUR/USD but slightly less consistent spread wise. This is another great pair to move as well as scalp on low spreads. This is a safer currency pair to scalp or range trade since it’s less volatile on intraday basis than the EUR/USD. Same as above, this is another currency pair that is widely used by high frequency systems.
4) GBP/USD: After the euro, this is the most popular currency pair to trade. It’s volatile intraday and long term. This pair is not as liquid as the EUR/USD and USD/JPY; thus, it has a higher spread than EUR/USD and USD/JPY, even in the best of times. The London session is best for trading GBP/USD. During the Asia time zone, GBP/USD is hard to trade in large sizes because liquidity is less and its spreads are inconsistent. GBP/USD is the single biggest reason people who lose money trading currencies lose. Range trading strategies are not recommended, neither is scalping. GBP, just like GBP/JPY, is a great breakout and momentum currency. Market makers usually do a better job in GBP/USD during the Asia time zone as they understand that GBP/USD trading is where the majority of people lose money so they are willing to offer fixed spreads or tighter spreads during the Asia time zone. However, when this currency pair does move, usually during London session, it is heavily re-quoted by market makers thus offsetting their initial advantage of fixed or tight spread during the Asia session.
UR/USD
EUR/GBP
USD/CHF
NZD/USD
AUD/USD
USD is best forex pairs to trade
USD – United state doller
1.EUR/USD – Euro/U.S. Dollar
2.GBP/USD – Great British Pound/U.S. Dollar
3.USD/CHF –- U.S. Dollar/Swiss Franc
4.USD/JPY –- U.S. Dollar/Japanese Yen
5.USD/CAD –- U.S. Dollar/Canadian Dollar
6.AUD/USD – Australian Dollar/U.S. Dollar
7.EUR/GBP – Euro/Great British Pound
8.EUR/JPY – Euro/Japanese Yen
9.EUR/CHF – Euro/Swiss Franc
10.GBP/CHF – Great British Pound/Swiss Franc
11.GBP/JPY – Great British Pound/Japanese Yen
12.CHF/JPY – Swiss Franc/Japanese Yen
13.NZD/USD – New Zealand Dollar/US Dollar
14.EUR/CAD – Euro/Canadian Dollar
15.AUD/CAD – Australian Dollar/Canadian Dollar
16.AUD/JPY – Australian Dollar/Japanese Yen
17.EUR/AUD – Euro/Australian Dollar
NOTE: Of the above 17 currency pairs, six of them are deemed the “major currency pairs” in the FOREX market because they account for about 80 percent of FOREX transactions:
1.EUR/USD – Euro/U.S. Dollar
2.GBP/USD – Great British Pound/U.S. Dollar
3.USD/CHF –- U.S. Dollar/Swiss Franc
4.USD/JPY –- U.S. Dollar/Japanese Yen
5.USD/CAD –- U.S. Dollar/Canadian Dollar
6.AUD/USD – Australian Dollar/U.S. Dollar
As you can see, there is a currency on the left and one on the right. The one on the left is referred to as the base, and the one listed on the right is known as the cross. The format, once again, is as follows. BASE/CROSS, or EUR/USD. The EUR is the BASE and the USD is the CROSS.
TERMINOLOGY:
•PIPS- Price Interest Point. This is the smallest unit price for any Foreign Currency.
•LOT- A lot of currency is one denomination for a trade (100K or mini account). This is similar to purchasing one stock or one contract in the futures market.
•LONG to buy
•SHORT to sell
•BID-The price at which you sell
•ASK-The price at which you buy
Price Interest Point – (PIP)
Profits are made in the FOREX by gaining PIPS. A pip is the last digit from the decimal point. This value is 1/100th of a cent. You may now be asking yourself, how do I make money off of 1/100th of a cent? The answer is leverage. The FOREX market is highly leveraged and should be respected. That said, it can also provide for a tremendous return on your investment. The average leverage in the FOREX is 100 to 1. Basically this indicates that for every dollar you invest in a trade you are controlling $100 of value.
Calculated PIP
Calculated PIP – shows the Price Interest Point (PIP) value for the selected currency pair based upon your trading account margin. For example, a standard 1 percent margin trading account controlling $100,000 in currency would show the EUR/USD with a PIP value of 10.
PIP VALUE-Fixed or Floating
FIXED- When the USD is the cross currency (right side of the pair), the PIP value is fixed at $10 in a 100k account.
FOATING- When the USD is the base currency (left side of the pair), the PIP value is based upon the exchange rate of the cross currency (i.e., USD/CAD.). Also, the PIP value is floating when the pair consists of foreign currencies (i.e., EUR/ GBP).
LOT
A lot is the normal unit of trading in the FOREX market. Trades are made in lot increments, similar to share increments in the stock market.
Standard (or 100k) FOREX account- has a 100:1 leverage ratio
1 LOT= $1,000 investment= ratio leveraged 100 to 1, which = $100,000 in buying power.
Mini FOREX account- has a 200:1 leverage ratio
1 LOT= $50 investment= ratio leveraged 200 to 1, which = $10,000 in buying power.
TRADING HOURS (EST)
•Trades 24 hours a day, 6 days a week. The market is open from Sunday at 5pm EST to Friday at 4pm EST.
It all depends on where you are located in the world and what time you want to trade. This will help determine what session time you will trading and therefore which currency pairs.
The below can help with indicators for trading any currency pairs..